UP Govt. likely to finalize 7th Pay Commission recommendations today

December 14, 2016

UP Govt. likely to finalize 7th Pay Commission recommendations today

The Akhilesh Yadav government may bring smiles on the faces of state employees on Tuesday by finalizing the recommendations of Seventh Pay Commission thereby ensuring a hike of up to 20 per cent in their salaries.

The state cabinet is scheduled to take up the interim report submitted by a committee on Seventh Pay Commission. The committee headed by retired bureaucrat GB Pattnaik had submitted its interim report to Chief Minister Akhilesh Yadav on December 7.

Around 22 lakh state employees and teachers are slated to get a salary hike of around 15 to 20 percent after the implementation of the recommendation with a minimum salary would be Rs 18,000 per month.

The interim report has tried to ensure parity in pay scales of state employees with that of Central government employees. The class three and four employees will get the most of benefits. The rate of inflation has been kept in mind while suggesting hike in salaries of the employees.

As per the Seventh Pay Commission recommendations, arrears would be paid in three to four instalments with some portions going to the Employees Provident Fund account. As per recommendations, the minimum salary of a government employee has now been fixed at Rs 18,000 per month.

Besides, the grade pay between Rs 5200- Rs 20,200 has been hiked to Rs 18,000- Rs 29,200, grade pay of Rs 9300- 34,800 has been hiked to Rs 35,400- 53,100, grade pay of Rs 15,600- 39,100 will now be Rs 56,100 -78,800, grade pay of Rs 37,400- 47000 will be 1,18,500- 1,44,200, grade pay of 67,000-75,500 will be Rs 1,82,200- 2,05,400, fixed grade pay of Rs 80,000 will now be fixed at Rs 2,25,000 while fixed grade pay of Rs 90,000 will now be Rs 2,50,000.

The Seventh Pay Commission had recommendated increase in salary of Central government employees in August 2016. Around that time, the Chief Minister had set up a committee to give its interim report on implementation of the Seventh Pay Commission.

The committee was given six months for submitting is report but due to the Assembly polls early next year, it was later asked to submit its report within three months.

As per statistics, UP government will incur an additional burden of Rs 26,573 crore annually in the first year of implementation while in the second year, the expenditure would come down to Rs 22,778 crore annually. Presently, the state government spends around Rs 95,000 crore annually on salary and perks for state employees.

The state cabinet will also deliberate on several other important issues including Samajwadi Health Insurance scheme and will also finalise the size of supplementary grant which is expected to be taken by the Winter Session likely to start from December 21. The government is also expected to pass a vote-on-accounts for the first four months of the next fiscal.

In the cabinet meeting, the government could approve the quantum of vote-on-accounts and supplementary budget. The supplementary budget would take care of the additional funds to be required for the payment of enhanced salary and arrears to the state employees after the implementation of the seventh pay commission from January 1, 2017. The state would require around Rs 27,000 crore additional burden annually for the Seventh Pay Commission.